Caterpillar Inc. (NYSE: CAT), Peoria, IL, reported sales of $7.3 billion for the third quarter, down 44% from sales in the third quarter of 2008. Profit decreased 53.5% to $404 million.

The negative impact of significantly lower sales volume was partially offset by lower costs, a favorable effective tax rate, favorable price realization and pre-tax

“We believe the third quarter marked the low point for Caterpillar sales and revenues in what has been the toughest recession since the 1930s. We are seeing encouraging signs that indicate a recovery may be underway,” CEO Jim Owens said. “However, the world economy is still facing significant challenges. There is uncertainty about the timing and strength of recovery.”

Since third quarter 2008, worldwide employment for Caterpillar has been reduced by 16% to 94,225 at the end of third quarter 2009.